A business loan can be availed with or without security, it all depends on the bank that is offering the loan and then the amount of risk they are ready to take. There are many banks in India that offers loan for both small and big businesses, irrespective of whether the loan is for an existing business or to start a brand new one. If you do not own any property, you can still get a quick business loan on the security of any other financial movable asset like a bank's fixed deposit, National Saving Certificates, Shares of approved listed companies, units of mutual funds scheme and insurance policies with good surrender value. Getting approval and money is possible within a few days, if you have all necessary documents and meet the eligibility criteria. Here are the eligibility criteria for the application of a business loan in India.
Eligibility Criteria for Different Employment Types
Net income of the concerned should be more than Rs. 150,000 per annum for a business loan of up to Rs. 1.5 million and over Rs. 300,000 for a business loan of above Rs. 1.5 million.
A minimum of 25% stake each can be clubbed to the income of the concerned.
The ones that possess a diploma or a degree in any of these disciplines like art / craft /profession or whoever possesses the skill that is considered as a profession from the bank's perspective shall be considered for any financial assistance. For example: Dental Surgeons, Accountants, Medical Practitioners, Engineers, Craftsmen, Management consultants, Construction contractors etc.
Deciding factors for Business Loan Eligibility
There are a lot of factors to be considered to gain eligibility for a business loan. Every bank that offers a loan will look into many criteria prior to sanctioning it. Few important ones are: